Rates of Income Tax - Minors

* Please click on maximise [+],not the titles, to display the contents of any hidden containers *

Tax on Resident Minors - Overview

The following rates apply if a minor (a person under age 18 on 30 June):

> is a resident of Australia for the whole financial year, and

> is not an excepted person (1), or

> has no excepted income (2).

The rates below do not include the Medicare Levy or the Flood Levy.

(1) Ordinary ‘adult’ rates of tax apply to all the income of an excepted person. See below for who is an excepted person.

(2) Excepted net income - that is, excepted income minus deductions relating to that income - is taxed at ordinary ‘adult’ rates. All other income of a minor who is not an excepted person will be taxed at the higher rates shown below. See below for what is excepted income.

Resident Minors – Rates of Tax

2017/2018

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 66% of the excess over $416

Over $1,307

45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

From 1 July 2011 the low-income tax offset will only reduce tax payable on ‘excepted income’. It cannot be used to reduce tax on ‘eligible income’ for most minors. The tax-free threshold for ‘eligible income’ is therefore $416.

The LITO restriction does not apply to minors who are excepted persons – see below for definition. For them the tax-free threshold is $988.

2014/2015, 2015/2016, 2016/2017

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 68% of the excess over $416

Over $1,307

47% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

From 1 July 2011 the low-income tax offset will only reduce tax payable on ‘excepted income’. It cannot be used to reduce tax on ‘eligible income’ for most minors. The tax-free threshold for ‘eligible income’ is therefore $416.

The LITO restriction does not apply to minors who are excepted persons – see below for definition. For them the tax-free threshold is $988.

2013/2014, 2012/2013

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 66% of the excess over $416

Over $1,307

45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

From 1 July 2011 the low income tax offset cannot be used to reduce tax on eligible income for most minors. The tax-free threshold for this type of income is therefore $416.

The LITO restriction does not apply to minors who are excepted persons – see below for definition. For them the tax free threshold is $988.

2011/2012

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 66% of the excess over $416

Over $1,307

45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

From 1 July 2011 the low income tax offset cannot be used to reduce tax on eligible income for most minors. The tax-free threshold for this type of income is therefore $416.

The LITO restriction does not apply to minors who are excepted persons – see below for definition. For them the tax free threshold is $3333.

2010/2011

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 66% of the excess over $416

Over $1,307

45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $3,333. This is because the low income tax offset of $1,500 offsets the tax payable on income up to $3,333. 2009/2010

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 66% of the excess over $416

Over $1,307

45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $3,000. This is because the low income tax offset of $1,350 offsets the tax payable on income up to $3,000.

2008/2009

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 66% of the excess over $416

Over $1,307

45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $2,667. This is because the low income tax offset of $1,200 offsets the tax payable on income up to $2,667.

2007/2008

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 66% of the excess over $416

Over $1,307

45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $1,666. This is because the low income tax offset of $750 offsets the tax payable on income up to $1,666.

2006/2007

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil + 66% of the excess over $416

Over $1,307

45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $1,333. This is because the low income tax offset of $600 offsets the tax payable on income up to $1,333.

2005/2006 and 2004/2005

Eligible Income*

Tax rates

$0 – $416

Nil

$417 – $1,445

Nil + 66% of the excess over $416

Over $1,445

47% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $772. This is because the low income tax offset of $235 offsets the tax payable on income up to $772.